REmortgage- Cheshire B Soc - Help

peeppeep94

I need help deciding the best offer from the Cheshire. (they are my existing lender who my independent advisor told me are v competitive so would prob be best to stick with them, partic seeing as i've been slack and mortgage has now gone out of discount period onto nasty variable at 7.29%, so they should be able to get a quick turn around)

I want to work out which of the 2 offers is best for me in the short term, but don't know where to start with the calcs to work it out.

My outstanding balance is about 34500 and 19 years term.

1) 5.24% fixed for 2 years. plus £499 admin fee. (fee interest free for one year , then can be paid in full or added to mortgage)

2) 5.59% fixed for 3 years. no fees.

Here are my considerations... i'm going to look at moving in the next 6 months... i've been told both products are portable. I can also pay up to £5000 capital off in a year.

I think I'm comfortable enough with reducing the term and inceasing the payments. On option 1 payments will be £301 ,or £307 for option 2 if i reduce the term to 13 years.

I could still afford to pay some extra off the capital, though this will depend on time of year etc.

Whilst the mortgage is portable does this tie me into only Cheshire's products when i go to purchase another property? (unless i pay redemption)

HELP... I'm completely bamboozled :rolleyes:

peterg1965

Me, I would go for the 5.24% fixed, add the fee and reduce the term to as much as i could afford. With regards to moving, I suspect you would be best taking a second mortgage with The Cheshire to run alongside this one, assuming that you would go for a bigger overall mortgage.